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President signs False Claims Act amendments bill

May 20, 2009

President Obama has signed the Fraud Enforecment and Recovery Act into law. In his signing statement, the President stressed the importance of safeguarding the “precious taxpayer dollars” needed for economic recovery.

Among the provisions of the law are sections that amend the False Claims Act. The amendments clarify terms used in the original law that were not defined in the statute. Some court opinions construed the terms in ways that did not always accord with congressional intent.

The bill’s sponsors believe the amendments will strengthen a law that has already resulted in over $20 billion in recoveries since 1986.

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